First-time buyers underestimate cost of a new home

First-time buyers underestimate cost of a new home

Recent research carried out by Aviva – the insurance firm best known for it's distinctive yellow branding and adverts featuring Paul Whitehouses' impressive range of accents – has revealed that 70% of first-time buyers underestimate the overall costs of getting their foot onto the property ladder, with the average first-time buyer under-budgeting by £6,481 when purchasing their first home.

 

The survey of 2,000 UK homeowners also found that first-time buyers typically shell out roughly £1,680 more than expected on vital repairs to the new home they have just bought. This further highlights the need for buyers to carry out more extensive research on the true costs of buying a home – currently, as the Aviva findings show, the expectations of first-time buyers are a little bit wide of the mark.

 

To fill this knowledge gap, Aviva has created a First Home page on its website. Here, buyers have access to a number of handy resources and advice to help them both save for a deposit and then buy that all-important first property. As well as this, there is a house viewing checklist to help first-time buyers swerve those unanticipated and costly repairs.

 

The research also threw up some other interesting results. When it came to saving for a house, people in East Anglia spend the longest time compiling the necessary funds for a deposit on their first home (an average of 4.13 years), while those in Scotland spend the shortest time saving up (3 years on average).

 

Saving for a home can be a frustrating and long-winded process, but those living in the South East of England are the least likely to give up on purchasing their first home (32%). By contrast, Londoners are the most likely to give up (60%), perhaps not surprising given the high house prices and high cost of living in the capital.

 

Again, unsurprisingly, over half of first-time buyers (52.5%) living in London had to borrow money from family members to save up for a new house. This compares unfavourably with the 25% of people in the South West who have had to turn to their families for financial support. In addition, almost a quarter of Londoners had to take on a second job to fund their first home, compared to just 9% in Scotland.

 

At Sarah Beeny’s Tepilo we aim to make the house buying process as simple as possible, for both buyers and sellers. If you’re selling your home with us, we make sure a dedicated sales manager will be with you every step of the way, from the moment you upload your property to our website through to completion.

 

To contact our personable and experienced team, you can email [email protected] or call 01702 870878.